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CA Intermediate · Taxation · Provisions for filing Return of Income and Self Assessment

Mr. Harish Nair, a resident individual, has a total tax liability, including cess, of ₹95,000 for tax year 2026-27. TDS of ₹28,000 was deducted on his income, TCS of ₹4,000 was collected from him on a foreign remittance, and he paid advance tax of ₹23,000. Ignoring interest, how much self-assessment tax must he pay before furnishing the return?

Harish must pay ₹40,000 as self-assessment tax. His total credits are TDS of ₹28,000, TCS of ₹4,000 and advance tax of ₹23,000, together ₹55,000. Subtracting this from the tax liability of ₹95,000 leaves ₹40,000 payable before he files the return.

  1. A₹40,000Correct
  2. B₹44,000
  3. C₹63,000
  4. D₹67,000

Explanation

Self-assessment tax is the tax liability less advance tax, TDS and TCS. The credits are 28,000 + 4,000 + 23,000 = ₹55,000. So 95,000 − 55,000 = ₹40,000. ₹44,000 results from ignoring the TCS credit, which is wrong because TCS is also adjustable against the liability.

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